Gold Prices
On Thursday, domestic gold prices continued their downward trajectory, with the price of 24-karat gold dropping by Rs5,800 per tola, ultimately closing at Rs216,500.
The decline in domestic gold prices can be attributed to the significant appreciation of the Pakistani Rupee (PKR) against the US Dollar in the open market, amounting to an impressive 27 rupees in just a few recent trading sessions.
A stronger PKR reduces the value of PKR-denominated gold since gold is in U.S. dollars.
It’s worth noting that domestic gold prices reached their second-highest level at Rs239,800 per tola on August 31, 2023, with the all-time high recorded at Rs240,000 per tola on May 10, 2023. However, following this peak, gold lost Rs23,300 per tola in just four trading sessions.
Additionally, positive developments related to a meeting between Chief of Army Staff (COAS) Asim Munir and the business community had an impact on local bullion.
COAS Munir highlighted the importance of the Special Investment Facilitation Council (SIFC) during the meeting, underscoring its potential to attract substantial investments, estimated at up to $100 billion.
This positive outlook may have boosted investor confidence, diminishing the appeal of assets like gold. According to the Karachi Sarafa Association, the price of 10-gram 24-karat gold reached Rs185,614 per tola, reflecting a decrease of Rs4,972.
Likewise, the market noted the price of 10-gram 22-karat gold at Rs170,146 per tola, reflecting a decline of Rs4,558.
In the domestic market, silver prices also fell, with 24-karat silver dropping by Rs50 to close at Rs2,650 per tola, and the price of 10-gram 24-karat silver reaching Rs2,272 per tola, declining by Rs42.87.
On the global front, international spot gold is currently trading at $1,920.77, representing a 0.22% increase compared to the previous close. Conversely, international spot silver is currently trading at $22.95, marking a 0.94% decrease for the day.
